Swedish furniture giant IKEA has laid off around 10,000 staff in Russia, Jesper Brodin, the CEO of Ingka Group, formerly know as IKEA Group, was cited by AFP as saying.
Inter IKEA Group CEO Jon Abrahamsson Ring says on an update on he company website that the war in Ukraine has affected IKEA customers and business alike.
IKEA has scaled down presence in Russia with full consideration for the many co-workers, partners and suppliers who’ve made the brand successful there for several years.
In early March just after Russia attacked Ukraine, IKEA announced that:
- Inter IKEA Group has taken the decision to pause all export and import in and out of Russia and Belarus.
- Inter IKEA Group has taken the decision to pause all IKEA Industry production operations in Russia. This also means that all deliveries from all sub-suppliers to these units are paused.
- Ingka Group has taken the decision to pause all IKEA Retail operations in Russia, while the shopping centre Mega, will continue to be open to ensure that the many people in Russia have access to their daily needs and essentials such as food, groceries and pharmacies.
These decisions have a direct impact on 15,000 IKEA co-workers. The ambitions of the company groups are long term and we have secured employment and income stability for the immediate future and provide support to them and their families in the region.
Several initiatives have already started throughout IKEA, together with established humanitarian organisations, to support the affected people with emergency relief in the most needed regions.
